Form 1099-G is an income statement from the government, not a bill. This income is considered taxable and must be included on your federal and state returns.
DOR must report any refund, credit or offset of state and county income made to individuals who claimed itemized deductions on their federal income tax returns as well as any interest paid.
DOR cannot net the amount against other transactions. Therefore, your Form 1099-G is correct as issued. For information on how to report the income and deduct your payment on your federal return, review IRS 1099-G information.
Unemployment
Unemployment compensation is taxable on both federal and state tax returns.
If you received unemployment compensation, use the 1099-G issued by the Department of Workforce Development and include it in your tax return.
FAQ
- Why did I receive a 1099-G?
- Do I have to report my refund as income?
- I itemized my deductions last year but haven't received a 1099-G yet. Is it too late to get one?
- Can a DOR-issued 1099-G be reissued if it is incorrect?
- This statement shows a refund amount that includes interest. What am I supposed to report as income?
- I claimed a refund from Indiana, but DOR applied the money to a tax bill I owed for another year. Does this mean the statement is wrong? Do I still have to report this as income?
- I showed an overpayment on my state tax return, but I had the money applied as a credit (estimated tax payment) to my account. Since I didn't get a refund, do I still have to report this?
- This statement says the refund was issued for a previous tax year, but I already reported that refund on my current federal tax return. Can you correct the statement? If not, what should I do?